Melbourne Property News Monthly Wrap – June 2023

Less auctions in chilly June, while clearance rates run hot!

Over June’s four weekends the Real Estate Institute of Victoria (REIV) recorded more than 2,196 auctions. 1,479 properties sold. 1,114 at auction, with 411 passed in. 364 properties were sold before auction & 1 property was sold after auction. The clearance rate averaged 79%, virtually repeating May’s 78.5%.

Auctions numbers were lower in June as school holidays took a lot of people out of town or overseas for a warm break. But the clearance rates show demand is still running strong, reinforcing property values and stability. It’s a good environment to sell your home, with demand guaranteed.

Another record result with Vendor Marketing

Following the record result achieved with 12 Drake Street, Brighton on the 27th of May (which also made Page 3 of the Sunday Herald Sun) Vendor Marketing achieved another, on the 3rd of June with 39 Darbyshire Road, Mount Waverley. Situated out of the Mount Waverley Secondary College Zone, this 3 bedroom, 1 bathroom, 2 car property sold for $1,873,000 (see further details below).

Not enough properties for sale

It’s a strong sellers market because there simply isn’t enough for sale, with about 15% fewer homes on the market than this time last year. Despite all the interest rate rises there are still strong cohorts of people who need to buy.

Immigration on overdrive, underwriting home values

The main force driving our high demand is immigration. The Australian newspaper reports more than 650,000 people are expected to land in Australia in the next 18 months. Melbourne usually takes 30%, which means around 200,000. As well as this the State Government group, Study Victoria, says an additional 170,000 students will land in Melbourne in 2023. There will be some departures from Melbourne as well, but around three hundred thousand new arrivals will need a home to rent or buy! 

How much will my house value rise?

There is a new immigration-based formula for predicting rising home values. New data from Domain claims when Australia’s population goes up by just 1%, it causes a 2.81% increase in house prices – even when only 5 to 10% of those new arrivals buy a home quickly. 

650.000 new arrivals are expected in Australia over the next 18 months. So according to Domain’s new formula, this equals about 2.4% of Australia’s 27M population, meaning it should spur national house value growth by 6.7%. Some of this positive growth should flow to Melbourne, looking forward. 

The key when selling though is to do everything right to maximise your sale price. Vendor Marketing’s strategies at every stage of the process, get a proven better sale result!

Craig Knudsen
Principal Advisor
Vendor Marketing

Brought to you by Vendor Marketing – Melbourne’s most qualified vendor advocates